Bethalto School Board debates bonds

Published 2:58 pm, Saturday, April 30, 2016

BETHALTO — The Bethalto school board is moving toward issuing about $2.5 million in Health-Life-Safety bonds, but there was some disagreement over the issue at a public hearing held last week.

The board also heard from a financial adviser about the issuing of bonds, which would also include refinancing other bonds to take advantage of lower interest rates.

Board Member Jeff Whaley criticized the district’s Life-Health-Safety plan, saying the items listed do not qualify.

He said the district lacked a “lawful order” that would allow the issuance of the bonds, and instead was rubber stamping its own wish list of repairs.

“You shouldn’t abuse Health-Life-Safety,” he said. “You think you can get away with whatever you want to do.”

Most of the criticism was directed at and answered by Board President Tom Beiermann, who said everything was done according to the law.

In general, Health-Life-Safety bonds are issued to correct problems related to potential safety issues, and districts have a wide latitude about what kind of work can be done. Bonds can be issued without voter approval, but are subject to the district’s debt limits.

The items are based on a 10-year survey, usually conducted by an architect or engineer. Whaley said at the meeting that for the past two years the school survey had no items listed.

However, according to the Madison County Regional Superintendent of Schools office, the latest survey for the Bethalto School District was completed in February.

Assistant Regional Superintendent of Schools Andrew Reinking said Tuesday it appeared the district’s paperwork was in order, but is not complete yet.

“That is a road map for things identified by the architect that need to be taken care of in various buildings in the school district,” he added.

Later in the meeting the board heard a report from Tim King of King Financial.

King said in addition to the $2.5 million Health-Life-Safety bond, he recommended refinancing about $2.2 million in current bonds issued in 2006 and 2009.

“Interest rates are still ridiculously low,” he said, adding the refinancing could save the district $60,000 to $80,000 annually for the life of the bonds.

The board also approved adding repairs to the cafeteria roof at Bethalto East to the Health-Life-Safety list.